Data Center Cooling Market Research 2025-2035: Asia-Pacific Leads Surge Amid Digital Economy Expansion, Retrofitting Gaining Momentum – ResearchAndMarkets.com
Published on
June 13, 2025
DUBLIN–(BUSINESS WIRE)–The “Data Center Cooling Market – A Global and Regional Analysis: Focus on Product, Application, and Country-Level Analysis – Analysis and Forecast, 2025-2035” report has been added to ResearchAndMarkets.com’s offering.
The data center cooling market is projected to reach $100.12 billion by 2035 from $25.77 billion in 2024, growing at a CAGR of 12.55% during the forecast period 2025-2035.
The data center cooling market is witnessing substantial growth, fueled by the increasing demand for data storage, processing, and cloud computing services. As data generation accelerates globally, efficient cooling solutions have become essential to ensure the optimal performance and longevity of data centers.
The market has been heavily influenced by the rising need for energy-efficient and sustainable technologies, driven by both environmental concerns and stringent regulations aimed at reducing carbon footprints. Despite its rapid expansion, the industry faces challenges, including high upfront costs and operational complexities associated with maintaining these systems. However, ongoing advancements in cooling technology, coupled with rising demand for energy-efficient solutions, are expected to mitigate these hurdles.
The data center cooling market has a significant impact on various industries, particularly those reliant on large-scale data storage and processing, such as cloud computing, e-commerce, and telecommunications. Efficient cooling systems are essential to prevent hardware malfunctions and downtime, thereby enhancing operational reliability and minimizing costs. With increasing data consumption, cooling solutions that reduce energy consumption and carbon emissions are increasingly valued for their sustainability.
Industries are adopting cutting-edge cooling technologies such as liquid cooling and AI-driven systems to address growing power demands while complying with stringent environmental regulations. Additionally, the rising emphasis on green building certifications and eco-friendly operations is driving the demand for energy-efficient cooling solutions across industries. As data centers become more integral to the global economy, the evolution of cooling technologies is not only expected to improve operational efficiency but also shape the future of sustainable business practices.
Asia-Pacific is one of the largest data center markets in the world due to enormous industrial and commercial enterprises that have significantly impacted the demand for data centers in the region. Asia-Pacific is followed by North America and Europe in terms of market size. Moreover, Asia-Pacific is expected to have a massive demand for data center cooling technologies due to numerous data centers and the growing demand for innovative technologies and spending in the region.
IT and Telecom to Lead the Market by End-Use Industry
Based on the end-use industry, the IT and telecom segment dominates the market. With the introduction of new technologies such as 5G, IoT, virtual and augmented reality, and artificial intelligence, the telecommunications industry has been evolving to cater to huge data processing. As a result, telecom data centers have also been transforming to handle high data volume and low latency needs. The banking, financial services, and insurance (BFSI) segment is expected to anticipate the highest growth rate due to being digitized, which involves utilizing the most cutting-edge technology, which will boost the data center usage, thereby augmenting the data center cooling solutions.
Centralized Data Center to Lead the Market by Data Center Type
Based on data center type, the centralized data center segment includes sub-segments such as hyperscale, colocation, and enterprise. The centralized data center segment dominates the market due to the demand for hyperscale data centers being driven by the need for more data and processing power. Hyperscale data centers are needed to deliver additional capacity virtually on demand because of cloud adoption.
Hyperscale data centers, which are enormous, mission-critical buildings built to support robust, scalable applications effectively, are frequently connected to big data-generating firms such as Google, Amazon, Facebook, IBM, and Microsoft. The edge data centers, which are situated physically closer to end-user devices that are both generating and utilizing data, are therefore being driven by 5G. Due to this factor, edge data centers are expected to have the highest growth rate because the cloud interface and core compute closer to the edge are required to reduce transport latency.
Others to Lead the Market by Application Area
Others category, encompassing industries such as aerospace and defense, blockchain, agriculture, and healthcare, is set to lead the data center cooling market, based on application area, due to their increasing reliance on data-intensive operations and real-time processing. As sectors such as cryptocurrency mining, smart grids, and AI-driven agriculture expand, they require advanced cooling technologies to manage growing data volumes and maintain operational efficiency. Additionally, industries such as financial services and government demand high reliability and compliance, further driving the need for innovative, scalable, and energy-efficient cooling solutions to ensure system stability and performance.
Air Cooling to Lead the Market by Solution
Based on solution, the air cooling market segment is expected to dominate the global data center cooling market because the majority of data centers are old currently and still continue to use air conditioners and other air cooling systems. Additionally, the retrofit data centers also adopt air cooling technologies. However, liquid cooling is expected to witness the highest growth rate from 2025 to 2035 as it efficiently cools the data center area, which results in less usage of fans, leading to better acoustics.
The new data centers are gradually moving from conventional data centers or conventional cooling systems to new-age cooling systems, which helps them to improve their efficiency, decrease carbon emissions, and become green and carbon-neutral data centers. This is one of the major factors for the higher growth rate of liquid cooling. Furthermore, liquid cooling is a quieter technique compared to air cooling systems. According to an industry expert, the hyperscale segment is growing, which has been leading to a higher cooling capacity being required. Hence, immersion cooling is expected to be one of the market-leading solutions for data center cooling over the next five years.
Medium Rack Density (5-9 kW) to Lead the Market by Rack Density
The medium rack density (5-9 kW) captures the significant market size of the global data center cooling market based on the rack density. This is because most of the data centers have adopted medium rack density. However, the high rack density segment is booming as it achieves better space utilization, and the response time of system failure is reduced significantly. A high rack density data center usually consumes more than 9 kW of power; hence, it needs better airflow management to ensure efficient cooling, driving the overall data center cooling market.
Key Attributes:
Report Attribute
Details
No. of Pages
335
Forecast Period
2025 – 2035
Estimated Market Value (USD) in 2025
$30.69 Billion
Forecasted Market Value (USD) by 2035
$100.12 Billion
Compound Annual Growth Rate
12.5%
Regions Covered
Global
Market Dynamics Overview
Market Drivers
High-Efficient Cooling Systems
Emerging Technologies Promote Cost-Effectiveness
AI-Assisted Automatic Cooling Control
Power Usage Effectiveness (PUE) Optimization with Economic Cooling Solutions
Increasing Number of Data Centers and Spendings
Thermal Energy Recovery Conversion from Data Centers
Water Usage Effectiveness Driving Adoption of Alternate Cooling Solutions
Retrofitting to a Free Cooling Data Center
Trends: Current and Future Impact Assessment
Trends Shaping Data Center Cooling Market
Increase in Data Requirements
Increasing Rack Power Density – New Data Center Reality
5G Services to Drive Exponential Growth in Data Centers
Growth in Demand for Environment-Friendly Cooling Systems
Carbon Neutrality
Utilization of Renewable Energies
Green Initiatives by Government Body
New Data Center Trends toward Adoption of Liquid Cooling, 2024-2034
Market Restraints
High Investment Costs for Non-Conventional Cooling Systems
Technical Challenges to Cooling Systems
Air and Free Cooling Systems Adaption Complexities
Reliability Limitations with Immersion Liquid Cooling
Business Opportunities
Growing Emphasis for Retrofit Data Center
Data Center Infrastructure Management for Power Management
Increasing Number of Distributed or Edge Data Centers
Case Studies
Immersion Cooling Technology
Revolutionizing Data Center Efficiency: Two-Phase Liquid Immersion Cooling at Quincy, Washington
Advancing Data Center Cooling Efficiency: The University of Leeds’ Adoption of Fully Immersed Liquid-Cooled Servers
PeaSoup Cloud: Pioneering Eco-Friendly Cloud Services with Immersion Cooling Technology
HYDRA Immersion Cooling: Revolutionizing Data Centre Efficiency and Sustainability
Advancing Thermal Efficiency: The Role of Liquid Immersion Cooling in Future Data Centers
Other Liquid Cooling Technology
Capital Expense Comparison-Facility and IT Load for Both Air-Cooled and Liquid-Cooled Data Center
Colovore Implements Liquid Cooling Solution, Offering Rack Capacities of up to 50 kW
Evaporative Cooling Market for Data Center Overview
Global Market Size for Evaporative Cooling
Global Market Size for Evaporative Media
Current and Future Market Scenario for Evaporative Cooling
Replacement Rates for Evaporative Media
Regional Overview of Evaporative Cooling Market for Data Center
North America
Europe
Asia-Pacific
Rest-of-the-World
Historical Analysis of Evaporative Cooling Deployment across Global Data Centers (2018-2022)
New Data Center Trends toward Adoption of Evaporative Cooling (2023-2027)
Adoption of Cooling by Data Center Age
Retrofitting and Brownfield Projects
Green Field Projects and New Installation
Historical Analysis of Liquid Cooling Deployment across Global Data Centers, 2018-2023
New Data Center Trends toward Adoption of Cooling Technology Type (2023-2027)
Ecosystem and Ongoing Programs
Some of the prominent names in this market are:
Vertiv Group Corp.
Schneider Electric
Asetek, Inc.
Submer
Munters
ZutaCore, Inc.
Coolcentric (Heico Companies LLC)
Midas Immersion Cooling
PEZY Computing K.K.
ALFA LAVAL
Condair Group
Fujitsu
Danfoss
Modine Manufacturing Company
Boyd
Johnson Controls International plc
Carrier
STLUZ GMBH
LiquidStack Holding B.V.
JETCOOL Technologies Inc (Flex Ltd.)
Chilldyne, Inc.
Accelsius LLC
CoolIT Systems
DCX Liquid Cooling Systems
nVent
Rittal GmbH & Co. KG
For more information about this report visit https://www.researchandmarkets.com/r/eaof5g
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